Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
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D E C E M B E R 2 0 1 6 / S C T 41 Wellington, FL 130,838 SF Retail Center Buy Online: December 12-14 Starting Bid: $6,000,000 10x.com/wellingtongreen When it's time to sell – we've got you covered 10x.com/SCT | (800) 215-7780 FOR SALE Ten-X RE, Inc. DBA Ten-X Broker License No: FL CQ1050204 www.ten-x.com, 1 Mauchly, Irvine, CA 92618 (800) 841-9112. Backed by Where real estate is moving TM New York National Deal Making Conference Booth #115 Visit us at: Office Depot defends market share as it closes stores By Brannon Boswell E ven as it closes 300 of its 1,506 U.S. stores over the next three years, Office Depot is taking care not to cede too much market share to com- petitors, the chain's executives said on a third-quarter earnings call. Office Depot closed seven stores during the quarter and says it plans to shutter 65 more in the fourth quarter. This will bring the total number of its closures this year to 125, comprising some 2.8 million square feet. Even with the massive reduction in store count, the chain has managed to hold onto 30 percent of the sales from those closed stores, according to Chair- man and CEO Roland C. Smith. "We continue to implement a very effective process to maximize the benefits of store closures, including having brand ambas- sadors at closing locations to encourage customers to visit our other stores in the area, as well as using marketing and pro- motional materials to drive future pur- chases," Smith said. "As a result, we have been successful in retaining customers and our sales transfer rates continue to exceed our expectations." The chain is keeping customers by launching a new store format that focuses on value, quality, service and expertise, Smith says. "With a footprint of approximately 15,000 square feet, the new store format is a significant reduction in size compared to our more traditional 20,000-square-foot- to-30,000-square-foot formats," Smith said. Office Depot converted its first store to the new format in February and now has 15 of them operating across the U.S. The new format dedicates a considerable amount of space to the expansion of service offerings, such as copy, print and tech assistance from specially trained associates. "We are still in the testing phase of this program, but so far customer feedback has been very positive, and we are encouraged by the financial results," Smith said. "Our current plan is to have approximately 25 stores opened by the end of this year, and we are targeting to expand the test to 100 stores in 2017." n